Compensating and reimbursing family members

This post is an update to our previous post regarding travel for family members.

Recent changes in Social Security policy have forced us to change our policies and procedures regarding compensating and reimbursing family members.  On May 17, 2012 the Social Security Administration published a change to the POMS (Social Security Manual) regarding Trusts.  Please see SI 01120.201 F.2.
  
You will see that Example 1 outlines what expenses will be allowed for sole benefit trusts.  Travel for family members is often paid from a Special Needs Trust.  Now, the Social Security Administration will not allow for payment of travel for family members to come and visit the beneficiary. We are still able to continue to pay for a beneficiary to personally travel and take vacation.

We can, however, continue to compensate or reimburse a family member who provides services to the beneficiary; at least presently.  The Social Security Administration has hinted they may soon challenge the ability to pay family members for any services.  Until such a change in policy, we will continue to pay or reimburse family members for services rendered to the beneficiary.

Services must be received directly by the beneficiary in order to be paid from the Special Needs Trust.  A summary of time and services must be provided with the request for payment.  Copies of receipts must be submitted when seeking reimbursement for travel expenses incurred on behalf of a beneficiary.  Charges and reimbursements must be reasonable based upon the services performed.  Finally, only the person providing services may be compensated or reimbursed.

We will keep you informed if Social Security makes any changes that require us to adjust these procedures.




















Travis D. Finchum and
Steven E. Hitchcock

Florida Bar Certified Elder Law attorneys
Co-Trustees, Guardian Trust
Location: Clearwater, FL, USA

Comments

Post a Comment

Popular posts from this blog

(d)(4)(A) vs. (d)(4)(C) - The Great Debate

Image
We are seeing a lot of attorneys drafting d4A Special Needs Trusts for disabled beneficiaries under age 65 when they should use a Pooled Trust.  We administer both individual and our pooled SNT, so it doesn't really matter to us.  I will propose a thought that there is never a good reason to draft an individual SNT over our Pooled Trust.  The traditional arguments for drafting a stand alone (d)(4)(A) SNT over a pooled trust include:  1) I want to be the trustee (or name a family member), 2) I want the trustee to pay back the Medicaid lien and then the rest go to designated beneficiaries and 3) I want to invest the funds, or have my investment person handle the investments.  I will take each of these points in turn.  Individuals do not know how to administer trusts in general, let alone SNT's.  The federal law and policy is constantly changing, particularly for beneficiaries receiving S upplemental S ecurity I ncome, or SSI.  It is extremely difficult to keep up with these
Read more

2019 Social Security and Medicaid Income and Asset Limits

Happy New Year! We wanted to keep you updated with the 2019 eligibility figures for Medicaid and Supplemental Security Income (SSI).  The resource limit for a single person stays the same ($2,000) for SSI and long term care Medicaid programs. For a spouse at home of a person qualifying for long term care Medicaid (often referred to as the "community spouse"), the resource limit has increased to $126,420.  The income limit (maximum Federal benefit rate) for SSI is now $771 per month which then makes the Medicaid income limit $2,313 (always 3 times the SSI limit).  Medicare Part B monthly premiums have increased. According to  www.medicare.gov , the standard Part B premium amount will be $135.50 per month. However, most people will pay less. The monthly personal needs allowance for people on Medicaid in a nursing home remains at $130.  Finally, the home equity exclusion for Medicaid eligibility went up to $585,000.  For a chart of these figures click  here .
Read more
Image
Congratulations to Co-Trustee Kole Long on becoming Board Certified in Elder Law. Kole joins only 113 other Florida lawyers to hold this distinction. Board Certification recognizes attorneys’ special knowledge, skills and proficiency in various areas of law and professionalism and ethics in practice. Approximately 7% of all Florida lawyers are Board Certified in any specialty. In addition to serving as Co-Trustee for Guardian Trust, Kole is a practicing attorney with Special Needs Lawyers, PA which is the only law firm with 4 Florida Bar Board Certified Elder Law Attorneys. Help us to congratulate Kole for achieving this commendable honor!
Read more